Liquidia Corp(LQDA) - 2022 Q1 - Quarterly Report

Financial Performance - Revenue for the three months ended March 31, 2022, was $3.492 million, an increase of 13.3% compared to $3.084 million for the same period in 2021[17]. - Total costs and expenses for the same period were $17.964 million, up 48.5% from $12.085 million in the prior year[17]. - The net loss for the three months ended March 31, 2022, was $15.943 million, compared to a net loss of $9.183 million for the same period in 2021, reflecting a 73.5% increase in losses[17]. - For the three months ended March 31, 2022, Liquidia Corporation reported a net loss of $15.9 million, compared to a net loss of $9.2 million for the same period in 2021[21]. - Liquidia's cash used in operating activities for Q1 2022 was $9.8 million, a decrease from $12.4 million in Q1 2021[21]. Cash and Cash Equivalents - Cash and cash equivalents as of March 31, 2022, were $57.794 million, slightly up from $57.494 million at the end of 2021[16]. - Cash and cash equivalents as of March 31, 2022, were $57.8 million, an increase from $53.6 million at the end of Q1 2021[21]. - Liquidia anticipates that its cash and cash equivalents will be sufficient to fund operations into 2024[29]. Expenses - Research and development expenses decreased to $4.728 million in Q1 2022 from $6.054 million in Q1 2021, a reduction of 21.9%[17]. - General and administrative expenses surged to $12.542 million in Q1 2022, up 134.5% from $5.337 million in Q1 2021[17]. - The Company recorded total stock-based compensation expense of $4.185 million for the three months ended March 31, 2022, compared to $745,000 for the same period in 2021[89]. Liabilities and Deficits - The total liabilities increased to $38.136 million as of March 31, 2022, compared to $28.464 million at the end of 2021, marking a 33.9% rise[16]. - The accumulated deficit as of March 31, 2022, was $325.524 million, compared to $309.581 million at the end of 2021, indicating an increase in the deficit[16]. - Long-term debt increased to $19.476 million as of March 31, 2022, from $10.410 million as of December 31, 2021[113]. Revenue Sources - The company generated revenue primarily from a promotion agreement with Sandoz, which accounted for 98% of revenue and accounts receivable for the three months ended March 31, 2022[39]. - The Company derived approximately 98% of its revenue from the Promotion Agreement with Sandoz during the three months ended March 31, 2022[100]. Product Development and Commercialization - The company has plans to commercialize its product candidates and is actively pursuing regulatory approvals, including for YUTREPIA[11]. - Liquidia's lead product candidate, YUTREPIA, is designed to improve the therapeutic profile of treprostinil and received tentative FDA approval in November 2021[25]. - The company expects to incur significant expenses and operating losses for the foreseeable future as it seeks regulatory approval and pursues commercialization of its product candidates[26]. Stock and Equity - The company reported a weighted average of 52,465,283 common shares outstanding for the three months ended March 31, 2022, compared to 43,443,361 shares for the same period in 2021[17]. - The Company had 1,700,000 shares initially authorized for the 2020 Long-Term Incentive Plan, which increased by 2,091,509 shares on January 1, 2022, under the Evergreen Provision[78]. - The Company granted 409,569 time-based Restricted Stock Units (RSUs) during the three months ended March 31, 2022, with a weighted average grant-date fair value of $6.08[96]. Financing Activities - The company has financed its growth through a combination of revenue, stock issuances, and debt financing[27]. - The Company completed a private placement on April 13, 2021, raising approximately $21.7 million from the sale of 8,626,037 shares at $2.52 per share[75]. - The Company raised approximately $53.7 million in net proceeds from an underwritten public offering of 11,274,510 shares at an offering price of $5.10 per share[126]. Legal and Compliance - The company’s litigation finance payable is classified as a long-term liability, reflecting ongoing legal expenses related to litigation[68]. - The company adopted ASU 2020-06 effective January 1, 2022, which had no impact on its financial statements[55].